SHL

Sonic HealthcareASX:SHL Stock Report

Market Cap

AU$20.2b

7D

1.2%

1Y

30.0%

Updated

18 Sep, 2021

Data

Company Financials +
SHL fundamental analysis
Snowflake Score
Valuation2/6
Future Growth0/6
Past Performance6/6
Financial Health5/6
Dividends4/6

SHL Overview

Sonic Healthcare Limited operates as a healthcare company in Australia.

Sonic Healthcare Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Sonic Healthcare
Historical stock prices
Current Share PriceAU$42.12
52 Week HighAU$30.21
52 Week LowAU$43.99
Beta0.35
1 Month Change-0.66%
3 Month Change11.40%
1 Year Change29.96%
3 Year Change66.55%
5 Year Change90.24%
Change since IPO42,020.00%

Recent News & Updates

Sep 15
Does Sonic Healthcare (ASX:SHL) Have A Healthy Balance Sheet?

Does Sonic Healthcare (ASX:SHL) Have A Healthy Balance Sheet?

The external fund manager backed by Berkshire Hathaway's Charlie Munger, Li Lu, makes no bones about it when he says...

Aug 26
Is Sonic Healthcare Limited (ASX:SHL) Worth AU$42.5 Based On Its Intrinsic Value?

Is Sonic Healthcare Limited (ASX:SHL) Worth AU$42.5 Based On Its Intrinsic Value?

How far off is Sonic Healthcare Limited ( ASX:SHL ) from its intrinsic value? Using the most recent financial data...

Shareholder Returns

SHLAU HealthcareAU Market
7D1.2%1.9%-0.01%
1Y30.0%23.6%27.1%

Return vs Industry: SHL exceeded the Australian Healthcare industry which returned 23.6% over the past year.

Return vs Market: SHL exceeded the Australian Market which returned 27% over the past year.

Price Volatility

Is SHL's price volatile compared to industry and market?
SHL volatility
SHL Beta0.35
Industry Beta0.58
Market Beta1

Stable Share Price: SHL is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: SHL's weekly volatility (2%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
193438,000Colin Goldschmidthttps://www.sonichealthcare.com

Sonic Healthcare Limited operates as a healthcare company in Australia. The company provides laboratory medicine/pathology, diagnostic imaging/radiology, primary care medical services to medical practitioners, hospitals, community health services, and their collective patients. It also offers occupational health services, remote health services, community and home nursing services, primary care research programs, health assessment technologies, clinical trials, and chronic disease management programs.

Valuation

Is Sonic Healthcare undervalued compared to its fair value and its price relative to the market?

15.35x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SHL (A$42.12) is trading above our estimate of fair value (A$32.85)

Significantly Below Fair Value: SHL is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: SHL is good value based on its PE Ratio (15.4x) compared to the Australian Healthcare industry average (26.5x).

PE vs Market: SHL is good value based on its PE Ratio (15.4x) compared to the Australian market (18.7x).


Price to Earnings Growth Ratio

PEG Ratio: SHL's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: SHL is overvalued based on its PB Ratio (3.2x) compared to the AU Healthcare industry average (2.4x).


Future Growth

How is Sonic Healthcare forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

-18.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SHL's earnings are forecast to decline over the next 3 years (-18.3% per year).

Earnings vs Market: SHL's earnings are forecast to decline over the next 3 years (-18.3% per year).

High Growth Earnings: SHL's earnings are forecast to decline over the next 3 years.

Revenue vs Market: SHL's revenue is expected to decline over the next 3 years (-2.4% per year).

High Growth Revenue: SHL's revenue is forecast to decline over the next 3 years (-2.4% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SHL's Return on Equity is forecast to be low in 3 years time (9.6%).


Past Performance

How has Sonic Healthcare performed over the past 5 years?

20.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SHL has high quality earnings.

Growing Profit Margin: SHL's current net profit margins (15%) are higher than last year (7.7%).


Past Earnings Growth Analysis

Earnings Trend: SHL's earnings have grown significantly by 20% per year over the past 5 years.

Accelerating Growth: SHL's earnings growth over the past year (149.2%) exceeds its 5-year average (20% per year).

Earnings vs Industry: SHL earnings growth over the past year (149.2%) exceeded the Healthcare industry 61.3%.


Return on Equity

High ROE: SHL's Return on Equity (20.7%) is considered high.


Financial Health

How is Sonic Healthcare's financial position?


Financial Position Analysis

Short Term Liabilities: SHL's short term assets (A$2.3B) exceed its short term liabilities (A$2.2B).

Long Term Liabilities: SHL's short term assets (A$2.3B) do not cover its long term liabilities (A$3.0B).


Debt to Equity History and Analysis

Debt Level: SHL's debt to equity ratio (28%) is considered satisfactory.

Reducing Debt: SHL's debt to equity ratio has reduced from 68.9% to 28% over the past 5 years.

Debt Coverage: SHL's debt is well covered by operating cash flow (112.2%).

Interest Coverage: SHL's interest payments on its debt are well covered by EBIT (20.8x coverage).


Balance Sheet


Dividend

What is Sonic Healthcare current dividend yield, its reliability and sustainability?

2.16%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SHL's dividend (2.16%) isn’t notable compared to the bottom 25% of dividend payers in the Australian market (2.3%).

High Dividend: SHL's dividend (2.16%) is low compared to the top 25% of dividend payers in the Australian market (5.41%).


Stability and Growth of Payments

Stable Dividend: SHL's dividends per share have been stable in the past 10 years.

Growing Dividend: SHL's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (33%), SHL's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SHL's dividends in 3 years are forecast to be covered by earnings (68.4% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

20.7yrs

Average management tenure


CEO

Colin Goldschmidt (67 yo)

no data

Tenure

AU$4,493,845

Compensation

Dr. Colin Stephen Goldschmidt, M.B.B.Ch., F.R.C.P.A., F.A.I.C.D. serves as the Chief Executive Officer of Sonic Healthcare Limited since 1993 and has been its Managing Director since 1992. Dr. Goldschmidt...


CEO Compensation Analysis

Compensation vs Market: Colin's total compensation ($USD3.27M) is about average for companies of similar size in the Australian market ($USD3.56M).

Compensation vs Earnings: Colin's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: SHL's management team is seasoned and experienced (20.7 years average tenure).


Board Members

Experienced Board: SHL's board of directors are seasoned and experienced ( 11.2 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Sonic Healthcare Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Sonic Healthcare Limited
  • Ticker: SHL
  • Exchange: ASX
  • Founded: 1934
  • Industry: Health Care Services
  • Sector: Healthcare
  • Market Cap: AU$20.187b
  • Shares outstanding: 479.28m
  • Website: https://www.sonichealthcare.com

Number of Employees


Location

  • Sonic Healthcare Limited
  • Grosvenor Place
  • Level 22
  • Sydney
  • New South Wales
  • 2000
  • Australia

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/18 08:03
End of Day Share Price2021/09/17 00:00
Earnings2021/06/30
Annual Earnings2021/06/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.